Jerry Dias, president of Unifor, says the investment solidifies the future of Canada's auto industry and is the result of hard-fought labour negotiations with the automaker.

"Clearly Ford is very committed to the Canadian operation," he said.

"This is a signal that Ford understands the importance of the Canadian operation, recognizes the value of the Canadian dollar. Ford knows Canada is a good place to do business."

1st investment in Oakville plant: Dias

This is the first time Ford has invested in operations at the Oakville assembly plant since the $1.2-billion deal was signed, he said, noting that 85 per cent of the funds have already gone toward creating and maintaining almost 800 jobs at Ford's Essex Engine Plant in Windsor.

"It's about taking the next step. It's really about investing in the latest technology and playing with the latest technology, so it's a big deal," he told CBC Toronto. "The announcement today is a signal that they're planning to hang around for the long-term."

Unifor represents about 5,000 workers in Oakville. While the new Edge ST won't create more jobs, Dias explains it's too early to know how it will impact job security.

"I'm positive and I'm confident because nobody makes these types of investments lightly," he said. "I'm pleased with the opportunities it's creating in Oakville."

The automaker first expanded production of the Edge in Canada three years ago after the country signed a free trade deal with the European Union allowing it to build the SUV for the European market.

The Oakville assembly plant, first opened in 1953, also produces the Ford Flex, Ford Edge, Lincoln MKT and Lincoln MKX.